Hedge funds are bearish on gold

Hedge funds turned bearish on the yellow metal after prices plunged to their worst weekly performance since the end of June and dropped to near three-year lows of $1,182 per ounce.

According to Mining.co, gold prices fell to $1,309 per ounce on Monday after dropping more than 5% last week. In August, gold briefly entered the bullish territory. Since then, short resellers have re-entered the market, ahead of the Federal Reserve’s meeting this week.

The gold price has increased nearly 60% since QE1 was announced in December 2008 when the ruling price was $837 an ounce, but the metal has retreated some $370 in 2013, says Mining.co.